BAE secures contract to build two platform supply vessels

A model of the platform supply vessel to be built by BAE Systems Southeast Shipyards Alabama in Mobile. (Photo courtsey of BAE Systems)

MOBILE, Alabama -- BAE Systems today said the Mobile shipyard has picked up a contract from Houston, Texas-based GulfMark Americas Inc., to build two platform supply vessels, a project that will serve offshore drilling operations.

Vic Rhoades, director and general manager at BAE Systems Southeast Shipyards Alabama, said the contract also includes the option to build two additional platform supply vessels, a major step forward in the company's support to the oil and gas industry. The ships will supply offshore oil platforms and will be qualified under the U.S. Jones Act.

GulfMark's latest 10Q filing with the U.S. Securities and Exchange Commission said the 288-foot-long and 62-foot-wide vessels are expected to cost $48 million each.

Construction of the first ship will start in the first quarter of 2013, to be completed by mid-2014. The second ship will be completed in 2015, said BAE spokesman Neil Franz.

"This contract reinforces our commitment to new construction in the commercial market and strengthens BAE Systems' position as a highly competitive and financially stable builder of technically sophisticated ships," Richard McCreary, vice president of BAE Systems Southeast Shipyards, said in a press release. "We continue to grow our backlog of projects and build our workforce in Mobile."

Poland-based MMC Ship Design & Marine Consulting Ltd., will provide the design for the vessels, which will be based on similar platform supply vessels currently under construction for GulfMark abroad. The ships will support the anticipated future demand in the Gulf of Mexico offshore market, as well as other areas around the world as necessary, BAE said.

The new contract adds to BAE's growing list of commercial jobs. BAE announced in June that it was awarded a contract with Great Lakes Dock & Dredge Company to build two dump scows, which are used for dredging operations. Construction on the two is expected to start in October.

The shipyard also is working on the MV Magdalen, a trailing suction hopper dredge expected to be completed in 2014 for Weeks Marine Inc.

BAE Systems currently employs more than 650 people in Mobile and expects to hire an additional 275 workers there by the end of this year. 